Overall, the company is pleased with its performance. Unlike the falling comps and projected losses at Children's Place
Gymboree credits part of its success to its ability to lure shoppers back to its stores with attractive promotions. It has kept customers piqued by adjusting the types of promotions it offers. This is certainly a better ploy than simply marking down unwanted merchandise until it finally sells. It has also enabled the retailer to keep inventories in check without needing to drastically slash prices. It has also generated positive results by continuing to leverage its Play & Music business into additional clothing sales.
Gymboree has consistently been an impressive performer, and it appears to have gained the upper hand on its competitors. The one potential concern I see is its now-lofty valuation. We'll know much more about whether it truly deserves that price tag when it releases earnings next month. For now, however, Gymboree seems to have everything it needs to keep leaping forward.
For more on the kiddie clothiers, bounce to:
- Nobody's Home at Children's Place
- Gymboree Tumbles On: Fool by Numbers
- Foolish Forecast: Up and Away With Gymboree
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Fool contributor Mike Cianciolo welcomes feedback and doesn't own any of the companies in this article.